The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Like most other stocks,
has taken a beating in recent months despite positive company news.
The stock has proven more resilient than many of its peers, however.
has lost nearly 30% over the past three months while DuPont has shed only 20%.
We believe that broad concerns over the European debt crisis and U.S. economic growth -- the drivers of the recent stock market selling -- are what caused DuPont's slump rather than any deterioration in the company's fundamentals.
DuPont competes with other major chemical and agricultural companies such as Dow Chemical,
, which is about 30% greater than its current market price.
Sliding Investor Confidence Drags on Shares
The State Street Investor Confidence Index measures investors "attitude" toward to risk and indicates global investor confidence stood near its 12-month low at 89.6 points in August 2011, a massive drop of 12.9 points from 102.5 points in July. North America witnessed the largest drop -- 13.9 points -- in investor confidence in August.
The Center for European Economic Research reported that German investor confidence has also plummeted dramatically, to a 2 1/2-year low in September.
The primary cause for the declining investor confidence is deteriorating global economic environment due to worsening European sovereign debt crisis, rising concerns over U.S. economic growth and inflationary pressures in many developing economies. We expect that investor confidence will remain low until market concerns subside, causing increased volatility in stock prices in the near term.
Positive Developments Help in the Meantime
DuPont recently announced at the Credit Suisse Chemicals & Ag Conference that its seed business, Pioneer Hi-Bred, added market share in the North American corn and soybean markets. DuPont has also recently received approvals for new products -- Optimum AcreMax and Optimum AcreMax Xtra -- which should expand the company's offerings of new insect protection solutions for farmers.
DuPont's continued focus on leveraging new research facilities for product innovation, global expansion, and supply chain management to ensure full product availability will help the company continue expanding its market share in agriculture and nutrition based products over the medium term.
You can drag the trend lines in the modifiable chart above to see the impact of these trends on DuPont's stock value.
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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.